The High Court of Karnataka on Monday directed the State government, as an interim arrangement, to pay JSW Energy Ltd., at a rate of ₹7.25 per KWh (Ex-Bus) instead of ₹4.86 per KWh (Ex-Bus) fixed by the State government on October 16, 2023, for supplying surplus power to the State grid from company’s Imported Coal Based Power Plant (ICBPP) in Karnataka.
A Division Bench comprising Chief Justice Prasanna B. Varale and Justice Krishna S. Dixit passed the order while disposing of an appeal filed by the company against the October 27 order of the single judge, who had asked the company to submit representation to the State government to pay electricity charges on a par with the Power Exchange Rate as existed on October 16, 2023.
Interim arrangement
The Bench said that the interim arrangement of making payment at ₹7.25 per unit would be in place only till the outcome of the decision by the single judge on company’s petition of challenging the government’s October 16 communication.
Meanwhile, the Bench directed the State government to submit its reply to company’s pending petition by November 10 and requested the single judge to decide on the petition within a week from November 10.
The State government under Section 11 of the Electricity Act, 2003, had on October 16 issued a communication directing all the power generators in Karnataka to operate and maintain the concerned generating stations to maximum exportable capacity and supply all the electricity generated to the State grid subject to certain conditions, and one of the conditions stipulated was that the power generators would be paid at ₹4.86 per unit provisionally subject to the proceedings before the Karnataka Electricity Regulatory Commission.
What company questioned
However, the company had questioned the State government’s authority to issue such a communication when the Central government way back on February 20, 2023, had issued a direction under Section 11 of the Electricity Act stipulating, amongst others, that all ICBPPs should supply power to the Power Purchase Agreement (PPA) holders and any surplus power left thereafter, or any power for which there is no PPA, should be sold through the Power Exchanges.
